Export declines for two consecutive months - are fewer orders from US buyers the main reason?

After August, Bangladesh's goods exports to the global market fell again in September - by 4.61% to $3.63 billion - driven by a decline in key readymade garment (RMG) shipments, according to data released by the Export Promotion Bureau (EPB) on 5 October.

Exporters mainly blamed the decline in orders from US buyers on the reciprocal tariffs imposed by the US, which remains the single largest market for Bangladeshi goods, about 20% of Bangladesh's export destinations.

Despite the monthly fall, exports during the first quarter of FY26 grew by 5.56%, reaching $11.66 billion, EPB data showed.

The RMG sector, which accounts for over 80% of the country's total exports, saw notable declines in September - knitwear exports fell by 5.75%, while woven garments declined by 5.54%, according to EPB figures.

Exports slide 4.61% in September but higher remittance offers relief

After the US finalised a 20% reciprocal tariff on Bangladeshi goods in early August, local exporters had hoped for a surge in orders, believing that Bangladesh was in a somewhat better position compared to its competitors. However, exporters say they have witnessed the opposite.

"What we had expected is turning out to be the opposite in reality — US apparel orders to Bangladesh have decreased rather than increased," said Inamul Haq Khan Bablu, Senior Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), while speaking to The Business Standard.

He added, "US consumer spending has slowed due to the high tariff. Clothing consumption is declining, and buyers are not placing new orders because of it."

"Traditionally, August, September, and October are lean season for Bangladesh's apparel exporters, but we did not expect such a decline," said Bablu, who is also the Managing Director of Ananta Garments Limited, one of the country's leading RMG exporters, adding, "Other than the US market, our export orders have not been significantly affected."

He, however, expressed hope that apparel orders would return to normal from November onward.

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), echoed the same concern.

"Due to the reciprocal tariff, US buyers are delaying or reducing orders as they negotiate to shift part of the tariff burden onto Bangladeshi suppliers. We also learned that retail sales in the US market have dropped," Hatem told TBS.

Hatem cautioned exporters not to reduce prices further, saying, "Most exporters already operate on very thin margins. In some cases, they are taking orders at break-even point or even at a loss. It's practically impossible for them to absorb the impact of the US reciprocal tariff."

According to BGMEA, Bangladeshi RMG exporters now pay an average of 36.5% in duties and tariffs — including the new 20% reciprocal tariff — which was originally supposed to be borne by the buyers.

Export earning dips 2.93% in August

However, several US buyers are reportedly trying to pass on 5%–7% of the new tariff to Bangladeshi suppliers, a fact acknowledged by both exporters and buyers' representatives who spoke to The Business Standard recently.

Rakibul Alam Chowdhury, Managing Director of Chattogram-based HKC Apparels, said he has refused to shoulder the additional cost imposed by US buyers, whose orders make up over 90% of his company's exports to the American market, leaving many orders unconfirmed.

"Our profits are minimal — sometimes just at break-even," said Rakibul, whose factory employs 6,500 workers. "We cannot take loss-making orders. If necessary, we may reduce factory size, but further losses are unsustainable."

EPB data shows that Bangladesh's exports stood at $3.63 billion in September 2025, down from $3.80 billion in the same month last year — marking a 4.61% year-on-year decline.

Besides RMG, exports of several other products — including agricultural goods, chemical products, plastics, cotton and cotton goods, specialised textiles, home textiles, and footwear — also declined year-on-year in September.

However, exports of frozen and live fish, as well as leather and leather goods, registered growth during the month.